Roku (NASDAQ:ROKU) Shares Down 1.5% - Time to Sell?

Key Points

• Roku shares slipped 1.5% on Friday, trading lower even as volume came in well below average. The stock closed at $124.02 after hitting an intraday low of $121.80.
• Recent earnings were strong: Roku posted EPS of $0.57 versus the $0.34 estimate and revenue of $1.25 billion, up 22.4% year over year. That beat helped reinforce optimism around continued platform growth.
• Analysts remain broadly positive, with several firms raising price targets and the consensus rating still at Moderate Buy. However, insider selling, including shares sold by the CEO under a Rule 10b5-1 plan, may be adding some near-term pressure on sentiment.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares traded down 1.5% during trading on Friday . The company traded as low as $121.80 and last traded at $124.02. 1,856,680 shares were traded during trading, a decline of 42% from the average session volume of 3,214,240 shares. The stock had previously closed at $125.85.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Jefferies said Roku has a credible path to beat its full-year guidance, citing political advertising, higher World Cup viewership, and improving ad fill rates. The firm sees upside to about 25% year-over-year platform revenue growth in fiscal 2026, above Roku’s current guidance of roughly 21%. Article Title
• Positive Sentiment: Roku’s latest earnings beat expectations, with EPS of $0.57 versus the $0.34 estimate and revenue of $1.25 billion topping forecasts. Revenue also rose 22.4% year over year, reinforcing the view that the business is still growing strongly.
• Positive Sentiment: Analyst sentiment remains favorable, with multiple firms raising price targets after earnings and the broader consensus rating still sitting at Moderate Buy.
• Neutral Sentiment: Roku was also highlighted in “trending stock” coverage from Zacks, which mainly suggests increased investor interest rather than a clear new fundamental catalyst. Article Title
• Negative Sentiment: CEO Anthony Wood sold 75,000 shares in a pre-arranged Rule 10b5-1 transaction, which can weigh on sentiment even though the sale was planned in advance. Article Title

Analyst Ratings Changes

ROKU has been the subject of several research analyst reports. Susquehanna lifted their price objective on Roku from $130.00 to $160.00 and gave the stock a "positive" rating in a research report on Friday, May 1st. Benchmark upped their target price on Roku from $130.00 to $160.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Guggenheim raised their target price on Roku from $130.00 to $140.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Citizens Jmp lifted their target price on Roku from $160.00 to $170.00 and gave the stock a "market outperform" rating in a report on Friday, May 1st. Finally, Zacks Research lowered Roku from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 14th. Twenty-one research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $143.42.

Roku Price Performance

The stock has a market cap of $18.28 billion, a price-to-earnings ratio of 93.25 and a beta of 2.04. The firm's fifty day moving average price is $105.97 and its two-hundred day moving average price is $102.59.

Roku (NASDAQ:ROKU - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.34 by $0.23. Roku had a return on equity of 7.64% and a net margin of 4.06%.The company had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same period last year, the business posted ($0.19) EPS. The firm's revenue for the quarter was up 22.4% compared to the same quarter last year. On average, equities research analysts anticipate that Roku, Inc. will post 2.41 earnings per share for the current year.

Insider Activity

In other Roku news, insider Gilbert Fuchsberg sold 9,593 shares of the business's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $125.52, for a total transaction of $1,204,113.36. Following the completion of the sale, the insider owned 50,863 shares in the company, valued at approximately $6,384,323.76. The trade was a 15.87% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Neil D. Hunt sold 2,000 shares of the business's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $122.11, for a total transaction of $244,220.00. Following the sale, the director directly owned 7,782 shares of the company's stock, valued at approximately $950,260.02. The trade was a 20.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 688,038 shares of company stock valued at $76,076,295. Corporate insiders own 13.45% of the company's stock.

Hedge Funds Weigh In On Roku

Hedge funds have recently modified their holdings of the company. Blue Trust Inc. grew its holdings in shares of Roku by 680.0% in the fourth quarter. Blue Trust Inc. now owns 234 shares of the company's stock valued at $25,000 after acquiring an additional 204 shares in the last quarter. Aventura Private Wealth LLC bought a new stake in Roku during the fourth quarter worth $26,000. Bayban lifted its holdings in Roku by 1,300.0% during the first quarter. Bayban now owns 280 shares of the company's stock worth $26,000 after acquiring an additional 260 shares during the period. WPG Advisers LLC purchased a new position in Roku in the fourth quarter worth $31,000. Finally, Safe Harbor Fiduciary LLC purchased a new position in Roku in the fourth quarter worth $31,000. Institutional investors own 86.30% of the company's stock.

Roku Company Profile

Roku, Inc NASDAQ: ROKU is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company's platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku's product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.

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